In the first quarter of 2025, MTN Nigeria, the biggest telecom provider in the nation, invested ₦202.4 billion to strengthen its network infrastructure, a 159 percent increase over the previous year.
The increase in investment comes after the government approved a 50 percent tariff adjustment, which allowed the business to improve service quality and meet the growing demand for data.
In line with its strategic goals, the company’s capital expenditure intensity increased by 8.7 percentage points to 19.1 percent. Capital spending increased by the same 159 percent when tower lease renegotiations were excluded, demonstrating a strong reaction to market conditions.
“This accelerated deployment supports unprecedented data traffic growth and prioritises user experience,” the telecom, which has 84 million subscribers, stated in its unaudited financial reports on Wednesday.
It continued, “We remain focused on executing our Ambition 2025 strategy, accelerating network investment, deepening digital and financial inclusion, and restoring shareholder value in a challenging but improving macro environment. We will continue to execute with discipline, agility, and a focus on sustainable growth.”
To maximise passive infrastructure in Nigeria, its parent company, MTN Group, strategically signed an infrastructure-sharing agreement with Airtel Africa in March. This move is anticipated to increase coverage and reduce costs.
Effort to improve network service delivery
The Nigerian Communications Commission announced on Tuesday that telecom operators have placed orders for more than $1 billion worth of network infrastructure from Chinese original equipment manufacturers in an effort to improve service quality.
After a protracted period of financial strain, the move marks a return to capital investment in the telecom sector, even though the equipment has not yet arrived, been cleared, or been deployed in-country.
The regulator emphasised that strong infrastructure will be essential to meeting growing data demands and supporting emerging digital services across the economy as the $75 billion industry gets ready for its next phase of growth.
MTN Nigeria rebounds with N133.7 billion profit in Q1 2025
In contrast, the business reported a N133.7 billion profit after taxes, recovering from a N392.7 billion loss during the same time last year. A sharp drop in foreign exchange losses and a spike in operating profit propelled the turnaround.
Significant effects were seen in lease-related costs, which made up more than 60 percent of total operating expenses. Between Q1 2024 and Q1 2025, the value of the naira dropped 72.2 percent year over year, from N897.8/$ to N1,546.1/$.
It produced N209.9 billion in free cash flow while maintaining strict financial discipline. By the end of March, its cash reserves, which were supported by wise capital allocation, totalled N303.7 billion.
With only $1.4 million in outstanding letters of credit and foreign-denominated debt, the operator also decreased its exposure to foreign exchange risk. This amount represents a decrease from 28 percent in December 2024 to 23 percent of total borrowings.